Port of LA, key US point for China imports, has best-ever quarter despite trade uncertainty

What made the Port of Los Angeles have its busiest quarter ever despite uncertainty over tariffs and global trade routes?

The Port of Los Angeles reached its busiest quarter despite uncertainty because several forces increased shipments at the same time. From July through September, it handled almost three million TEUs, setting a port record. The result shows that immediate shipping needs can outweigh concerns about changing trade rules and supply chains.

Port director Gene Seroka pointed to three main drivers. Tariffs were lower than their 2025 levels. Consumers were buying strongly ahead of festival season. Continued problems at the Suez and Panama canals also affected shipping choices and cargo flows. Together, these factors helped increase imports and container traffic.

The surge was not evenly balanced. September imports rose 19 per cent from a year earlier, while exports grew 10 per cent. Outbound cargo remained weaker than usual, reflecting problems for American farmers and manufacturers. Trade uncertainty therefore continued, even as the port recorded exceptional inbound demand.

What is a TEU, and why do ports use it to measure container traffic?

TEU means “twenty-foot equivalent unit.” It is a standard measure based on the volume of a single 20-foot shipping container. The unit describes capacity rather than the number of physical boxes alone, making container activity easier to report and compare.

For example, one 20-foot container equals one TEU. A larger container can be expressed as more than one equivalent unit because it holds more cargo volume. The Port of Los Angeles used this measure when reporting almost three million TEUs during its July-to-September quarter.

This standard matters because ports handle containers of different sizes and need a common yardstick. TEUs let officials, companies, and the public understand the scale of cargo moving through a port. They also make records and year-on-year comparisons clearer, such as the port’s nearly four-million-unit total from June through September.

How large was the port’s record-breaking volume, and how much did its imports and exports grow in September?

The Port of Los Angeles handled almost three million TEUs from July through September. That was its strongest three-month period in history. When June was included, the port moved almost four million container units across four months, making the scale of the surge even clearer.

September provided another measure of the increase. Imports were 19 per cent higher than in September a year earlier. Exports rose by 10 per cent. The figures show that the record was driven more strongly by goods entering the United States than by cargo leaving it.

That imbalance matters for the wider economy. Gene Seroka said outbound volumes were still softer than normal because American farmers and manufacturers faced continuing challenges. The port’s record therefore reflected powerful import demand, while export businesses had not recovered to the same extent.

Why did trade through Los Angeles increase even while businesses faced shifting tariffs and supply-chain uncertainty?

Trade increased because businesses and consumers still needed goods despite uncertainty. The port’s record quarter suggests that immediate demand continued to drive shipments. Lower tariffs than in 2025 also reduced pressure on some cargo flows, making imports easier to move than they might have been under higher duties.

Strong consumer demand ahead of festival season provided a concrete reason for companies to bring in more products. At the same time, operational challenges at the Suez and Panama canals affected global shipping. Those disruptions added another reason for cargo owners to adjust routes and use the Los Angeles gateway.

The increase did not remove the underlying risks. September imports rose 19 per cent, but exports grew only 10 per cent. Harvard professor Willy Shih said traders still faced uncertainty because Washington used a transactional approach while Beijing followed a strategic one. Businesses therefore continued planning contingencies and creating options.

Why are disruptions at the Suez and Panama canals important to cargo moving through the Port of Los Angeles?

The Suez and Panama canals are important because the article identifies both as facing continuing operational challenges. When major canal routes become difficult to use, shipping companies and cargo owners must deal with disrupted supply chains. That can change where goods move and which gateways handle them.

The Port of Los Angeles cited these canal problems as one reason for its record activity. Alongside lower tariffs and strong consumer demand, the disruptions helped increase cargo moving through the port. The article does not specify particular diversions or route changes, but it links the canal challenges directly to the port’s stronger volumes.

Their importance extends beyond one quarter. Persistent route problems add uncertainty for companies planning deliveries and inventories. They can also reinforce the value of alternative gateways. Even with record imports, however, the port’s broader trade environment remained unsettled because tariffs, global supply chains, and US-China policy were still changing.

How has the source of the port’s imports changed, and why have countries such as Vietnam and Mexico gained a larger role?

The port’s import sources have become more diversified. China supplied roughly 60 per cent of imports through Los Angeles in 2018, but its share is projected to fall to 40 per cent in 2026. China remains the largest source, followed by Vietnam, so the change is a reduction in share rather than a complete replacement.

Vietnam and Mexico have gained a larger role as companies rearrange where goods are assembled. Willy Shih said both countries had seen substantial growth in imports to the United States. The article connects this shift to efforts to change the final assembly location while keeping much of the existing upstream supply network.

That means the geography of trade is changing, but dependence may be lasting. US imports from China fell close to 30 per cent in 2025, while imports from Vietnam rose 42 per cent. Shih said companies still relied on Chinese intermediate goods, leaving supply chains strategically connected to China.

How can imports be shifted from China to countries such as Vietnam while companies still depend on Chinese intermediate goods?

The key concept is that production has several stages. A company may shift the final assembly of a product from China to Vietnam or Mexico. Yet earlier stages can remain tied to Chinese factories that provide parts, materials, or other intermediate goods. The visible export location changes, but the supply network underneath may not.

Willy Shih described this as “rearranging the final assembly step while the upstream dependence remains.” For example, a product could arrive in Vietnam with Chinese intermediate goods and be completed there before entering the United States. The article does not identify a specific product, but it presents this as the mechanism behind changing import patterns.

This helps explain why China’s share can decline without eliminating Chinese influence. Vietnam’s US imports rose 42 per cent in 2025, while China remained the largest source for Los Angeles. Companies are creating options, but traders still need a longer, more stable framework for planning.

Key Facts:

📌 The port handled almost three million TEUs in its best quarter ever.

📌 Lower tariffs helped support the record cargo volume.

📌 September imports rose 19 per cent year-on-year.

📌 TEU means twenty-foot equivalent unit.

📌 One TEU represents a standard 20-foot container’s cargo capacity.

📌 Ports use TEUs to compare container volumes consistently.

📌 The port moved almost three million TEUs from July through September.